Interest on PPF: Invest up to Rs 1.5 lakh annually in PPF account

Interest on PPF –Public Provident Fund (PPF) not only gives good interest but also tax exemption. Due to tax exemption, good interest and no risk of loss of money, Public Provident Fund (PPF) is a popular savings scheme. Some people get more interest than others on the money invested in PPF. It is not that the government gives them special interest, rather they invest money after understanding the PPF rules properly and get more benefits. Therefore, if you also invest after knowing the rules of PPF properly, then you will also get more benefits.

PPF account can be opened in post office or any bank branch It can be opened in. Currently, the government is giving 7.1 percent interest on the money invested in PPF. PPF Investing in PPF gives tax exemption up to Rs 1.5 lakh under Section 80C of Income Tax. A minimum of Rs 500 and a maximum of Rs 1,50,000 can be deposited in a PPF account every year. The interest on this amount is added to the account on the last day of every financial year. You can get more interest by doing two things. Today we will tell you about them.

Deposit the money by the 5th If you invest money in PPF every month, then the money in PPF will increase every month.month The money should be deposited between the 1st and 5th of every month. According to the PPF rules, interest in the Provident Fund account is calculated on the amount deposited in the account between the last date of the month and the 5th of the month. You will not get any interest on the money deposited after the 5th and you will start getting interest on that amount from the next month. Therefore, the money should be deposited by the 5th in any case.

This is how you can avail more benefits of compound interest on money in PPFcompound interest To get more interest on the amount deposited in the PPF account, you should invest the entire amount at the beginning of the financial year. This means that whatever amount you want to invest in PPF in a year, deposit it all at once by 5 April. By doing this, you will get interest on the entire amount from the beginning to the end of the year and you will get more benefit.